Section 8 Fair Market Rent (FMR) for ZIP 97350 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 97350 for Section 8 purposes, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $2030 cover your debt service?

• No: If the FMR cannot cover your debt service, then purchasing a property in this area for Section 8 is not advisable. Debt service includes all mortgage payments and other financing costs.
• Yes: Proceed to Step 2.

Step 2: How does the market rent of $830 compare to the FMR?

• Market Rent Below FMR: If the market rent is below the FMR, you can potentially charge the higher FMR rate to Section 8 tenants, making the investment more attractive. However, this also means that non-Section 8 tenants might be harder to find due to the higher rent price.
• Market Rent Equal to FMR: There's no premium for taking Section 8 tenants, but neither is there a penalty. Your rental income will align closely with the FMR, which is $2030 for this ZIP code.
• Market Rent Above FMR: This scenario is not applicable as the market rent is below the FMR. If it were above, you would have to accept lower rent from Section 8 tenants, which could affect your overall financial planning.

Step 3: Is there sufficient demand with 35.1% of residents renting and an unspecified number of days on the market (DOM)?

• It Depends: The 35.1% of residents who are renters indicates a moderate level of demand. However, the exact number of days on the market (DOM) is necessary to make a final decision. A low DOM suggests strong demand, while a high DOM might indicate challenges in finding tenants. Additionally, consider the local job market, population growth trends, and any recent economic developments in the area.

In conclusion, if the FMR of $2030 can cover your debt service, and given that the market rent is significantly lower at $830, you can leverage the higher FMR for Section 8 tenants. The demand for rentals is present with 35.1% of residents renting, but the strength of this demand will depend on the actual DOM figures. Analyze these factors carefully before making an investment decision in ZIP code 97350.

Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.